Marabraz estimates a 70% cost reduction from using Oracle Cloud Infrastructure

The retailer moves to Oracle Cloud Infrastructure to replace on-premises data center systems.

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We believe that no one is better prepared to deal with this environment than Oracle.

Klaus Fournou D'angeloIT Manager, Marabraz

Business challenges

Marabraz began more than 30 years ago as a family-owned retailer selling general merchandise. Over time, the company specialized in furniture, and now the chain has 137 stores in the state of São Paulo, Brazil. Its goal is to combine easy credit and quality products to always offer the best customer experience.

As a family company, its philosophy has always been to keep the entire information technology infrastructure on-premises, believing that the data was safe there. But the high cost of maintaining its own data center drove a migration to the cloud. When starting ecommerce in 2015, the company kept that separate from existing operations and launched in the cloud. That sparked a paradigm shift in philosophy, and people became convinced the cloud could also deliver better results for physical store operations.

Marabraz faced a decision: make needed updates to the on-premises data center, or embrace the cloud. "We needed to make necessary updates and improve scalability. That was a good time to think about change," says Gerson Pereira, IT infrastructure coordinator at Marabraz.

Before the cloud migration, the data center resided in the company's distribution center, so stores needed connectivity to that center. A better approach, the leadership concluded, would be to migrate store data to Oracle Cloud Infrastructure (OCI) and have stores connect directly to OCI.

Why Marabraz chose Oracle

Before choosing OCI, the team evaluated other providers. Oracle Enterprise Database Service provided an important differentiator, and this was a determining factor in the decision, Pereira says. Oracle’s proposal also delivered a better cost-benefit ratio, particularly because Marabraz already was using Oracle Database. The company also felt that OCI provided the security capabilities that the company needed.

Results

The retailer estimates a 70% cost reduction from running store and ecommerce operations on OCI, compared with maintaining the on-premises architecture.

The team has also seen significant improvement in database scalability. Before, even just upgrading a driver was difficult because it involved licensing. Today, with a few clicks, the company can add resources for increasing marketing activity, for example, or recovering a database backup. This is a significant change that brought a great benefit.

Marabraz moved to Oracle Cloud Infrastructure and replaced its on-premises data center systems. The retailer was up and running on Oracle Cloud three months after signing the contract, and in about six months, the company has closed six on-premises data centers and moved 100 virtual machines equaling 140 terabytes of business and operational data to the cloud. The Oracle support team was on tap for any unusual situations that arose in the environment.

With the OCI migration, the company now has an updated IT infrastructure. Marabraz plans to continue migrating workloads from the data center to OCI and to use OCI for disaster recovery.

Partners

Service IT was Marabraz’s partner on the initiative from the blueprint to the migration and now in sustaining operations. The provider manages ongoing migrations and maintains physical store and ecommerce systems.

Published:January 7, 2022